A new ETF focused on airlines, hotels and cruise operators will launch in London to enable investors to bet on the sector’s recovery after the pandemic.
TRYP (LON:TRYP) will track the Solactive airlines, hotels, cruise lines index and be distributed on the HANetf platform.
Due to the effects of the pandemic total global spending on leisure travel fell 50% from US$4.692trn in 2019 to $2.373 trillion in 2020[1]. Expenditures on business travel fell by 52%.
A strong rebound is now being forecast with the success of the vaccination programmes and with spending tipped to rise by 45% in 2021 to US$3.45trn.
Hector McNeil at HANetf and co-founder of the Airlines, Hotels and Cruise Lines UCITS ETF said “The travel industry has been decimated after the Pandemic but we are optimistic about a rebound in the travel industry in the short term due to the speed and extent of a COVID 19 vaccine roll-out, business travel restarting and pent up demand resulting from trips not taken during the pandemic.
“ Over the longer term, the growth of disposable income and savings, as well as the size and pace of a global economic recovery, will be key factors although it may take a few years to regain the lost ground.”
“We launched the Airlines, Hotels and Cruise Lines UCITS ETF for investors who want a way to trade a recovery of the travel industry in a single product and we are delighted to be able to launch TRYP on the London Stock Exchange later this month.”